Real Estate Practice Exam: State
Questions and Answers Graded A
A licensee who has passed the broker's state examination, but desires to continue to operate
under an owner-employer, will be a what under the law? ✔✔Broker
If a home owner was hoping to purchase a second home, but did not have plans to sell their
primary residence necessarily, which of the following financing options would work best?
✔✔Equity Loan
Who can receive compensation directly from the principal? ✔✔Employing broker
A property has an underground oil tank. The owner wishes to remove it. What must she do?
✔✔Have the fire department present
If Robert sells his home for $500,000 in Charlestown, MA, is he required to pay recording
stamps to the state? ✔✔Yes and it will cost him $2,280
Escrow records must be maintained for at least: ✔✔3 years
, How much in excise tax stamps would Michael and Holly pay on the sale of their $2,500,000
home in Brewster, part of Barnstable County, Massachusetts? ✔✔$16,200 -----
Explanation: $2,500,000 / $500 = $5,000 x $3.24 (the Barnstable County rate, which you should
know for the exam) = $16,200.
Which situation would NOT trigger the mandatory agency disclosure form requirement?
✔✔Speaking with a prospective buyer in person at an open house you are running
Sarah buys a 1980s ranch home and then adopts a 5 year old child. What are her requirements
under Massachusetts lead paint law? ✔✔She doesn't have to do anything
Leonard, Raj, Sheldon and Howard have found a multi-family property to purchase together.
They would all like to own equal shares interest and Howard wants to be able to leave his share
of the equity to his mother if he dies. Leonard has to sell some of his comic book collection in
order to come up with his share of the purchase price so it's likely that he won't be able to
purchase the property at the same time as his friends. His friends have agreed that he can become
a co-owner next month when he has the money. What type of ownership would be best for this
group of friends? ✔✔Tenancy in Common
Questions and Answers Graded A
A licensee who has passed the broker's state examination, but desires to continue to operate
under an owner-employer, will be a what under the law? ✔✔Broker
If a home owner was hoping to purchase a second home, but did not have plans to sell their
primary residence necessarily, which of the following financing options would work best?
✔✔Equity Loan
Who can receive compensation directly from the principal? ✔✔Employing broker
A property has an underground oil tank. The owner wishes to remove it. What must she do?
✔✔Have the fire department present
If Robert sells his home for $500,000 in Charlestown, MA, is he required to pay recording
stamps to the state? ✔✔Yes and it will cost him $2,280
Escrow records must be maintained for at least: ✔✔3 years
, How much in excise tax stamps would Michael and Holly pay on the sale of their $2,500,000
home in Brewster, part of Barnstable County, Massachusetts? ✔✔$16,200 -----
Explanation: $2,500,000 / $500 = $5,000 x $3.24 (the Barnstable County rate, which you should
know for the exam) = $16,200.
Which situation would NOT trigger the mandatory agency disclosure form requirement?
✔✔Speaking with a prospective buyer in person at an open house you are running
Sarah buys a 1980s ranch home and then adopts a 5 year old child. What are her requirements
under Massachusetts lead paint law? ✔✔She doesn't have to do anything
Leonard, Raj, Sheldon and Howard have found a multi-family property to purchase together.
They would all like to own equal shares interest and Howard wants to be able to leave his share
of the equity to his mother if he dies. Leonard has to sell some of his comic book collection in
order to come up with his share of the purchase price so it's likely that he won't be able to
purchase the property at the same time as his friends. His friends have agreed that he can become
a co-owner next month when he has the money. What type of ownership would be best for this
group of friends? ✔✔Tenancy in Common
